Authors:

Organizations:

Summary:

As foreign banking organizations (FBOs) gain familiarity with the final enhanced prudential standards (EPS) the Federal Reserve Board (Fed) announced more than one year after the proposal, FBOs are likely to conclude that these rules usher in a new era of supervision and enforcement. After nearly a decade of the Fed administering its supervisory program for FBOs, these regulations mark a significant landmark in its oversight of foreign banks’ operations in the United States. While the Fed’s statements in past years have pointed the way to a more vigorous role in regulating FBOs through its supervisory process, these more prescriptive rules finally make it official.